Yuji Horii, Dragon Quest creator, was featured in the latest Famitsu (via Gematsu), where he confirmed that Dragon Quest XI is indeed in production, although the team is now fully committed to Dragon Quest Heroes. This game was recently announced to PS3 and PS4 and it is an action RPG, in development by the Warriors team at Koei Tecmo, Omega Force.
Despite the production being outsourced to the Omega Force team, Yuji Horii has apparently been very 'hands-on' with the development process. The concept behind the game is an invasion of one million Dragon Quest inspired monsters, that players will obviously have to defeat. The game will also feature several orchestrated arrangements from previous Dragon Quest games and composer Koichi Sugiyama.
Dragon Quest Heroes is scheduled to release on spring 2015, to PS3 and PS4.